The project cost is estimated at Rs 363.95 crore with a foreign exchange component of Rs seven crore.

"The second vehicle assembly building will provide enhanced launch frequency of PSLV and GSLV by facilitating parallel integration operations.

"It will also provide redundancy to existing Vehicle Assembly Building (VAB) for integration of GSLV MK-III and also as a prime integration facility for third launch pad and future general launch vehicles," said a government statement.